Automakers welcome govt sops but are divided on festival season impact

Most agree, though, on the long-term benefits that the measures will bring in

While the measures announced by Finance Minister Nirmala Sitharaman on Friday to revive the automobile industry are expected to help in the second half, industry is divided on their impact on the festival season, which accounts for nearly 25 per cent of overall automobile sales.

Passenger car sales declined 19 per cent during Q1 and and by almost 30 per ceny in July, due to the slowdown in the economy, poor sentiment, liquidity crunch, and confusion over the continuity of BS-IV vehicles, among other factors.

On Friday, Government announced a slew of measures, including improving liquidity, to boost the demand.